Assets, Ethereum

What Is a Ethereum and How Does It Work?

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.

In the Ethereum protocol and blockchain there is a price for each operation. The general ledger of Ethereum is maintained by miners who are rewarded with Ether, the native currency of Ethereum, for verifying transactions.

For a transaction to be valid, it must be verified and included in a block by miners. When a block is verified and added to the blockchain, all associated transactions become immutable and can never be changed.

Ethereum’s Virtual Machine (EVM) is a Turing complete software that runs on the Ethereum network, allowing developers to build and run decentralized applications (DApps). Every DApp has its own blockchain, which is implemented as a smart contract running on the EVM.

The EVM makes it possible to create decentralized autonomous organizations (DAOs), which are organizations that are governed by code rather than by centralized authority. Several high-profile DAOs have been created on the Ethereum network, including TheDAO, Augur, and Melonport.

The EVM has also been used to create other types of decentralized applications, such as decentralized exchanges (DEXs), lending platforms, and prediction markets.

Decentralized applications have many advantages over traditional centralized applications. They are more resilient to attacks because there is no single point of failure.

They are also censorship-resistant because there is no central authority that can censor them. And they are more transparent because all code is publicly viewable on the Ethereum blockchain.

Ethereum is still in development and has not yet reached its full potential. However, it has already shown great promise as a platform for building decentralized applications.

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